- my iParenting
- quick clicks
- article archive
- expert q & a
- community & groups
- research baby names
- prepare a birth plan
- content channels
- ip channel rss feeds
- read birth stories
- read parenting stories
- recommended books
- e-newsletters
- safety recalls
- ip diaries
- ip store
- mom of the month
- dad of the month
- editor's letter
- letters to the editor
From Our Sponsors
- e-newsletters
- Sign up to receive our free weekly e-newsletters
- award-winning products
The iParenting Media Awards program helps parents find the best products for their families.
Parents' Top 10 Money Mistakes
The Most Common Financial Errors and How to Avoid Them
By Beth Skarupa
"We never save for Christmas so we end up letting bills go unpaid so we can give our kids a great Christmas and then we can never catch up with the bills that were pushed to the side," says Traci Draper of Chicago, Ill. "We always start out the new year this way. It's worse than credit card debt I think."
Car payments can also be a huge financial error because cars go down in value and take too big a bite out of the budget. "I talk to young parents very often these days that have $800 in car payments, and that's just crazy," Ramsey says. "I don't care if you make $100,000 a year ... you just can't win."
"Having no money set aside is like sending an engraved invitation to have Murphy move in your spare bedroom," says Ramsey. "Being broke attracts problems – it's amazing. Having three to six months' expenses lowers the stress level in the house, changes Mom and Dad's feel and makes you a better parent. It really does."
Ramsey recommends opening an Educational Savings Account. "You can put in up to $2,000 a year per child if you make under $200,000 a year, and that is more than adequate to send them to a state school and pay for it with tax-free growth," he says.
"Make sure that you plan for your retirement as well as your child's college," Sember says. "Kids can get loans for college but there are no loans for retirement. Set up a savings account for your baby and deposit cash gifts into it throughout his life. Make time in your life to do financial planning. It may seem like things are too crazy, but you need to think about it now."